Breedon Regulatory News (BREE)

2 Sep 2009 15:14



MARWYN MATERIALS LIMITED

UNAUDITED INTERIM RESULTS

FOR THE 6 MONTH PERIOD TO 30 JUNE 2009

Chairman's Statement

I am pleased to present the interim financial statements of Marwyn Materials Limited for the first six months of 2009.

Acquisition strategy

Marwyn Materials Limited was established to acquire controlling interests in building materials businesses, both listed and unquoted, in the UK, Europe and US, with a view to creating shareholder value through market consolidation. This continued to be the group's strategy throughout the period under review.

Results

The group's loss after taxation for the period from incorporation to 30 June 2009 was £435,050 which was in line with the expected result for this period. 

Costs incurred to date include £75,000 in relation to due diligence carried out on acquisition targets by the group's professional advisers but with a large proportion of work carried out by the management.

As at 30 June 2009, the group had net cash balances totalling £12.5 million. 

Dividends

It is the board's policy that prior to making the first acquisition, no dividends will be paid. Following the first acquisition, subject to availability of distributable reserves, dividends will be paid to shareholders when the directors believe it is appropriate and prudent to do so. However, the main focus of the group will be on delivering capital growth for shareholders.

Outlook

The group continues to pursue its stated acquisition strategy. The short term trading performance for building materials businesses has remained difficult and we continue to review a number of opportunities to acquire attractive assets at a cyclical low point for the industry. 

We believe that Marwyn Materials, with its strong and experienced management team, is well placed to exploit the available opportunities as they arise. 

Peter Tom

Chairman

2nd September 2009

Enquiries: 

Marwyn Materials Limited 

Peter Tom 020 7389 6800 

Simon Vivian 020 7389 6800 

Cenkos Securities plc 

Nicholas Wells 020 7397 8920

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

These condensed interim financial statements were approved and authorised for issue by the Board of Directors on 2nd September 2009 and signed on its behalf by:

Peter Tom CBE Simon Vivian

Chairman Chief Executive

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the 6 months ended 30 June

All the group's activities derive from continuing operations.

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the 6 months ended 30 June 2008 (unaudited)

For the 6 months ended 30 June 2009 (unaudited)

All the group's activities derive from continuing operations.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

For the 6 months ended 30 June

1. Reporting entity

Marwyn Materials Limited (the "Company") is a company domiciled in Jersey. The address of the Company's registered office is Elizabeth House, 9 Castle Street, St Helier, Jersey, JE2 3RT. 

The Company is listed on the Alternative Investment Market ("AIM").

This condensed consolidated interim financial information has not been audited and was approved for issue on 2nd September 2009.

2.Statement of compliance

These condensed consolidated interim financial statements for the six months ended 30 June 2009 have been prepared in accordance with International Accounting Standard (IAS) 34 'Interim Financial Reporting', as adopted by the European Union.  The condensed consolidated interim financial statements should be read in conjunction with the annual financial statements for the year ended 31 December 2008.

3. Accounting policies 

The accounting policies applied are consistent with those of the annual financial statements for the year ended 31 December 2008, as described in those annual financial statements, except for the adoption of new standards and interpretations as noted below:

− IAS 1 (revised), 'Presentation of financial statements'. The revised standard prohibits the presentation of items of income and expenses (that is 'non-owner change in equity') in the consolidated statement of changes in equity, requiring 'non-owner changes in equity' to be presented separately from owner changes in equity. All 'non-owner changes in equity' are required to be shown in a performance statement. Entities can choose whether to present one performance statement (the statement of comprehensive income) or two statements (the income statement and statement of comprehensive income). The group has elected to present one consolidated statement of comprehensive income. The interim financial statements have been prepared under the revised disclosure requirements which had no impact.

− IFRS 8, 'Operating segments'. IFRS 8 replaces IAS 14, 'Segment reporting'. It requires a 'management approach' under which segment information is presented on the same basis as that used for internal reporting purposes. This has not resulted in any change to the presentation. The Directors are of the opinion that the group is engaged in a single geographic and economic business segment. 

The International Accounting Standards Board's Annual Improvements Project was published in May 2008, with the majority of changes being applicable for the period commencing 1 January 2009. The project made minor amendments to a number of standards, primarily with a view to removing inconsistencies and clarifying wording. The amendments to these standards did not have any impact on the accounting policies, financial position or performance of the group.

Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual earnings. 

4. Seasonality

The group does not currently operate in an industry where significant or cyclical variations as a result of seasonal activity are experienced during the financial year. 

5. Dividend 

It is the board's policy that prior to making the first acquisition, no dividends will be paid. Following the first acquisition, subject to availability of distributable reserves, dividends will be paid to shareholders when the directors believe it is appropriate and prudent to do so. However, the main focus of the group will be on delivering capital growth for shareholders.

 6. Earnings per share

Basic earnings per share 

The calculation of basic earnings per share at 30 June 2009 (0.32p loss) was based on the loss attributable to ordinary shareholders of £435,050 and a weighted average number of ordinary shares outstanding of 136m.

The calculation of basic earnings per share at 30 June 2008 (0.46p loss) was based on the loss attributable to ordinary shareholders of £65,482 and a weighted average number of ordinary shares outstanding of 14.2m.

Diluted earnings per share  

The calculation of basic earnings per share at 30 June 2009 (0.32p loss) was based on the loss attributable to ordinary shareholders of £435,050 and a weighted average number of ordinary shares outstanding of 136m. The Participation Shares in issuance during the period are not included in the calculation of weighted average outstanding ordinary shares for the diluted earnings per share calculation as the effect is anti-dilutive.

The calculation of basic earnings per share at 30 June 2008 (0.46p loss) was based on the loss attributable to ordinary shareholders of £65,482 and a weighted average number of ordinary shares outstanding of 14.2m. The Participation Shares in issuance during the period are not included in the calculation of weighted average outstanding ordinary shares for the diluted earnings per share calculation as the effect is anti-dilutive.